Credit Suisse highlights important gold price levels. Analisdollarser at Credit Suisse noted that the yellow metal remains solid within its limits, despite being capped at $1832/34 at July/August highs. Commerzbank said gold could recover in the second half of the week. Cryptocoin. com we are looking at the details.
Gold price levels
The report was not entirely pessimistic, as the research note said, “Only a breakout above $1834 will appear to complete an in-range floor to pave the way for a deeper recovery to $1860, then to $1717.” On the downside, the team said, “Although the bearish pressure appears to be increasing, just below $1691/71 will mark a key top for a major bearish reversal change and then support was initially seen at $1620/15, $1565/60.” .
Commerzbank says gold could recover in the second half of the week
Commerzbank commodity analyst Daniel Briesemann thinks gold could recover in the second half of the week. This depends on the taper speed and possible rate increases. Briesemann states in the report:
Gold is under pressure from the US dollar and higher bond yields. Most of the sdollars polled by the Bloomberg news agency expect the Fed to give some indication of when to start the so-called contraction, i.e. reduce bond purchases, and decide on it formally at its next meeting in November.
In the bank’s opinion, he states: “We believe that the Fed will announce the rate cut in the fourth quarter this week and will signal the start of the new year. In our opinion, gold is likely to experience a sharp decline. There is any ground-breaking time until Wednesday evening’s Fed meeting and subsequent press conference. However, if Fed Chairman Powell can convince the market that there will be no rate hikes in the immediate aftermath of the rate cuts, gold could rally somewhat in the second half of the year. ”
Finally, Briesemann took a look at some other precious metals and said, “Platinum and palladium are down as much as 3% this morning – platinum is trading at $920 and palladium at $1,950. Probably according to the latest statistics from the CFTC, it is clear that speculative financial investors are pulling back even further from these two precious metals, thus creating a headwind. “While the week until September 14 was contradollar, the position in palladium remained on the net for the first time since the start of the data series.”
Looking at the platinum chart, it is seen that the price is heading towards the $1800/ounce support area. The price is now down 35% from the high of $3,017/ounce seen in May. The rest of this week will be a big test for the metal, the next support could be much lower to $1500/ounce as if the price were to break through the zone.